BTC ETFs Kick Off 2026 With $681M in Outflows as Risk Appetite Fades
What Happened to BTC ETFs at the begin of 2026?
Spot BTC platform-traded funds began 2026 on the back foot, recording sharp net outflows during the first full trading week of the year. Data from SoSoValue shows that U.S.-listed spot BTC ETFs shed a combined $681 million between Tuesday and Friday, reversing ahead inflows viewn at the begin of January.
The heaviest redemptions arrived midweek. On Wednesday alone, investors pulled roughly $486 million from . That was followed by $398.9 million in outflows on Thursday and another $249.9 million on Friday. Those losses outweighed inflows earlier in the week, leaving the sector firmly in negative territory.
The drawdown followed a short-lived burst of demand. On Jan. 2, BTC ETFs recorded $471.1 million in net inflows, followed by another $697.2 million on Jan. 5. The rapid reversal highlights how rapidly sentiment shifted as broader market conditions turned less supportive for risk assets.
Investor Takeaway
Are Ether ETFs Showing the identical Pattern?
tracked a similar, though smaller, move. Over the identical period, Ether funds posted weekly net outflows of about $68.6 million. Total net assets across ended the week near $18.7 billion, according to SoSoValue.
While the scale of redemptions was modest compared with BTC, the direction matched the broader tone across crypto-linked funds. Both products saw ahead interest fade as the week progressed, reinforcing the idea that investors were pulling back from exposure rather than rotating between assets.
The parallel decline suggests that the pullback was not driven by asset-specific factors, but by broader positioning across crypto markets as a whole.
Why Did Sentiment Flip So rapidly?
Market participants pointed to shifting macro expectations as the key driver behind the outflows. Vincent Liu, firm Kronos Research, said changing views on monetary policy and global risk were weighing on investor positioning.
“With Q1 rate cuts looking less likely and geopolitical risks rising, macro conditions have turned risk-off,” Liu said. “As traders wait for clearer positive signals, reduced risk appetite is spilling into crypto.”
Liu added that attention has shifted toward upcoming and guidance from the Federal Reserve. “Until clearer signals emerge, positioning is likely to remain cautious,” he said.
The message from ETF flows aligns with moves viewn across other risk assets, where investors have trimmed exposure while waiting for confirmation that policy easing is back on the table.
Investor Takeaway
Why Are Banks Still Filing for New Crypto ETFs?
Despite the ahead-year pullback, traditional finance continues to press ahead with new crypto products. During the identical week that ETF outflows accelerated, Morgan Stanley filed with the two spot crypto ETFs—one tied to BTC and another tracking Solana.
The filing followed a separate move by Bank of America, which began allowing advisers in its to recommend exposure to four BTC ETFs. The timing suggests that large banks remain focused on long-term product development even as short-term flows turn negative.
This split between near-term positioning and longer-term product expansion reflects how institutions are treating crypto exposure. Flows may swing rapidly based on rates and risk sentiment, but infrastructure buildout continues in the background.
What Does This Mean for BTC Going Forward?
BTC itself held near the $90,000 level through the volatility, indicating that ETF tradeing did not translate into immediate price capitulation. Still, the ahead-2026 flows underline that spot ETFs have not yet become a one-way source of demand.
Instead, they function as a liquid vehicle for institutions to add or reduce exposure in response to macro signals. That dynamic can amplify short-term moves, especially during periods when policy expectations shift rapidly.
